Economy Of Ghana Research Articles

The Impact of Informal Tax Education on Reporting Compliance: Mediation Role of General Tax Knowledge Within the Informal Sector of Ghana

One of the vital sectors within the economy of Ghana is the informal sector. The sector contributes significantly to the economy but remains largely untaxed, partly due to limited awareness of tax obligations and tax responsibilities. Although, some research work has been conducted in Ghana in relation to broader concept of tax education, tax compliance and tax knowledge within the informal sector, however, empirical investigation into the linkage between general tax knowledge, informal tax education and reporting compliance is rare. In view of this, the purpose of the study is to examine the mediating role of general tax knowledge on the impact of informal tax education on reporting compliance.

"Does Small-Scale Mining Contribute To The Economies Of Developing Countries?" The Case Of Ghana

The impact of small-scale mining in the economic growth and development of many mineral rich countries cannot be over emphasized. However, this has not received the desired attention and focuses over time as most host governments tend to focus more on the large-scale mining companies thereby, neglecting the salient role and contribution of Small-scale miners. This paper focuses on small-scale mining with particular reference to the Ghanaian mining sector which is largely driven by gold and diamonds. Small-scale mining in Ghana has immensely contributed to the GDP of the Ghanaian economy by creating jobs, alleviating poverty and earning foreign exchange revenue for the government. This paper evaluates whether or not small-scale mining contributes to the economy of Ghana.

Analysis of Ghana—Nigeria Export Trade: Linkages, Impacts and Policy Implications

This study hypothesised that the Ghana-Nigeria export trade has a significant impact on the economy of Ghana. Time series on variables of interest were obtained from the World Development Indicator (WDI) of the World Bank and the Ghana Statistical Service (GSS). The 2018 input-output table for Ghana was obtained from the social accounting matrix of the Organisation for Economic Co-operation and Development (OECD). The data were analysed using descriptive statistics, input-output analysis, and the autoregressive distributed lag (ARDL) bound testing approach. Through input-output analysis, this study found significant total impacts (151.585 to 190.139 million Ghana Cedis) in 2017 and 2018, centred around export commodities such as food and live animals, beverages, and tobacco. The expanding field of influence (214.373 to 268.898) and the ratio of impacts to Ghana's GDP (0.058% to 0.062%, then 0.044%) substantiate their pronounced role in the economy. The ARDL model showed that a percent increase in Ghana-Nigeria exports led to a 0.1017% increase in Ghana’s real GDP on the log-run. The speed of adjustment was 42.18% in each period. By providing support to exporters, both countries can leverage their comparative advantages, strengthen economic ties, and foster sustained growth through increased export trade.

Reflecting on Democratic and Economic Experiences in sub-Saharan Africa: A Comparative Analysis of the First 3 Decades vs. the Second 3 Decades under Ghana’s Republics

This study sought to juxtapose Ghana’s first three decades [1960s-1980s] of democratic and military regimes with its second three decades [the 1990s-2010s] of only democratic regimes to understand its political and economic trajectories and dynamics. Drawing on the Mandate Theory and leveraging on the interpretivist paradigm, the study adopted a qualitative content analysis and in-depth interviews to collect and analyze the views and opinions of respondents in Accra. The findings show that (a) The 1992 constitution has effectively halted Ghana’s 1960s and 80s cyclical political turmoil, ushering in ‘Pax Ghanaianica’, (b) There is a correlation between campaign promises and real GDP growth under the Fourth Republic, and (c) There is no correlation between a stable democracy and a stable real GDP growth under the Fourth Republic [i.e., The political campaign promises relative to power/electrification/energy have been unable to sustain production in Industry, Agriculture, Commerce, and Services]. The study concludes that Ghana’s roller coaster economic development may re-trigger ‘alien’ incursions into contemporary Ghanaian politics. It recommends that the political economy of Ghana should be structured to propel sustainable production in Industry, Agriculture, Commerce, and Services.

Digital Literacy in the Informal Economy of Ghana: Life-long Learning and Extending Working Lives of Older Persons in Post-Covid-19 Era

The COVID-19 pandemic has underscored the growing importance of digital technologies for economic resilience, especially for vulnerable groups like older workers in the informal sector. However, barriers to access and digital literacy create challenges alongside potential opportunities, particularly in less developed countries such as Ghana. Using older adults over 50 years engaged in informal work in Kumasi’s Central Business District in Ghana as a case, this paper explores older informal workers’ use of digital technologies in Ghana during the pandemic. Findings suggest that older informal workers relied heavily on their mobile phones as the only critical technological tool to sustain their businesses during the COVID-19 pandemic. However, the findings also reveal critical gaps in skills, training, and support, alongside resourcefulness in leveraging digital tools for business continuity. Key policy implications include expanding mobile-centric digital literacy programs, addressing infrastructure divides, and integrating capacity building into social protection. The paper contributes insights on strengthening lifelong learning and extending the working lives of older persons in the informal sector in the post-COVID era.

Profile of Patients With Obstructive Sleep Apnea: An Initial Experience in a Tertiary Health Facility.

Introduction Obstructive sleep apnea (OSA) is the most common sleep-related breathing disorder with increasing prevalence worldwide. The disease is, however, underdiagnosed in many resource-limited countries, especially in sub-Saharan Africa with unknown prevalence. Study aim The aim of this study was to determine the demographic and clinical characteristics, as well as measured sleep study parameters of suspected OSA patients. Methods The study was a retrospective review of the clinical characteristics and home sleep study reports of patients seen at the respiratory and sleep clinic from January 2020 to June 2022. Descriptive statistics such as means, medians, and percentages were employed to summarize the data using tables and graphs. Spearman correlation coefficient and Fisher's exact test were used to determine associations between the variables. Findings The study participants were predominantly male, and 64.7% were ≥50 years of age. Approximately 76% of the cases had moderate-to-severe OSA based on the apnea-hypopnea index (AHI) scores with a mean BMI of 38.4kg/m2 and 43.1kg/m2, respectively (p=0.013), and a mean STOP-BANG score of 5.2 and 6.2, respectively (p <0.001). There was a positive correlation between AHI scores and BMI of the patients (r=0.252, p=0.003), as well as with their STOP-BANG scores (r=0.436, p< 0.001). Oxygen desaturation index (ODI) parameters of participants also positively correlated with the AHI scores (r=0.872, p<0.001). Conclusion The proportion of patients with moderate-to-severe OSA was high. Obesity was significantly associated with AHI scores, which also positively correlated with the STOP-BANG and ODI scores. These results suggest that the burden of OSA, which is closely linked with obesity, could be underestimated in Ghana and requires epidemiological studies in the very near future to clearly define and anticipate its impact on the health economy of Ghana.

Assessing the Relationship between External Debt Financing and Gross Domestic Product in Ghana

The level of external debt of a country is of fundamental importance in every economy, as external debt may reflect the effectiveness and efficiency of an economy. The study was motivated by the ever-increasing rate at which Ghana has consistently borrowed from external sources. This study aimed to assess the relationship between external debt financing and gross domestic product and establish the determinants of external debt financing in Ghana. Using selected time series data (Gross domestic product, external debt, population growth, inflation, Literacy rate, export of goods and service, general government expenditure, and interest on external debt, 1978 - 2017) based on literature reviewed on the macro economy of Ghana, the study employed Autoregressive Distributed lag model (ARDL) after the Augmented Dickey-Fuller test statistic and Philip Perron proofs not to be stationary at levels but stationary at first difference. For that matter, ARDL was used to assess the impact of external debt financing on GDP to establish the determinants of external debt. Diagnostic tests which include auto-correlation, heteroscedasticity, and normality were also performed. Based on the results of the study, it was concluded that, variables were related only in the short run but not related in the long run. It was recommended that, external borrowing, population growth, inflation, general government expenditure and literacy rate should be control since their coefficients proves to have negative impact on GDP and on external debts

Analysing Factors that Enhance the Growth and Survival of Small and Medium Enterprises in Ghana

The economy of Ghana has been growing consistently during the recent years, and this growth has increased poverty and increased the number of middle-income countries in the region. Meanwhile, the current regional and global economic slowdown requires a new growth model for Ghana, with strengthened fluctuation for Small and Medium-sized enterprises (SMEs) to raise national productivity. Small and Medium Enterprises (SME’s) in Ghana play a dynamic role in the development of this nation, and this cannot be over- emphasized. It also serves as a means of employment in the country thus releasing the pressure on the civil and public sector in the case of employment. The study seeks to solve a problem of technology by Small and Medium Enterprises (SME’s) surveyed in Ghana by using PESTEL theory. It that painful process that Small and Medium Enterprise face to access the loan. Examine the various causes that hinder the growth and survival of small businesses in Ghana. To examine the variables that leads to the growth and survival of small businesses. To enumerate various sources of funds available to SMEs in Ghana and to ascertain the impact of hindrances by SME‟s to the growth of Ghana economy. Finally, the study also revealed that most of the entrepreneurs do not have much knowledge in using technology and it has affected the growth and the survival of SME. It is believed that if all the recommendations are taken into consideration, that entrepreneurs must regard the legal aspect of their day-to-day activities and process the necessary documents to avoid legal actions taken against them.

The Impact of the Local Green Economy of Ghana: A General Equilibrium Analysis

The Ghanaian forestry sector has experienced a paradigm shift toward resilient and sustainable forest management practices through climate change mitigation and adaptation policies. Ghana has acknowledged the urgent need to address these issues via comprehensive policy measures as a nation that is vulnerable to the adverse effects of climate change. To assess economy-wide impacts, this paper employs a computable general equilibrium with a static specific factor model that can be readily simulated with various vectors of price changes. The model uses a competitive production structure that assumes constant returns, full employment, competitive pricing, and perfect labor mobility across sectors. Factor shares, industry shares, and substitution matrices from 2022 Labor Force Report’s data were constructed for four skilled groups (managers, professionals, service, and production) across industry, service, the rest of agriculture, and forestry sectors. Predictions of price increases from climate change mitigation policies compliance were simulated for the long run and short run. Forestry, agricultural, and industrial sectors will enjoy higher prices under a green economy, but these would not translate into higher wages. It is rather capital owners in agriculture and forestry that would benefit. Wage adjustments to the green economy are smaller than what might be expected in a partial equilibrium model.

Determinants of the Tax Compliance and Fairness Perceptions of Taxpayers on the online Tax System. A Case of Ghana

In the face of the growing digital economy of Ghana, the Ghana revenue authority as part of its goal to increase domestic revenue mobilization has introduced an online tax system. The objective of the study is to determine the determinants of taxpayers’ perception of the fairness of the tax system and the determinants of their tax compliance. Data were collected using questionnaires from 380 respondents and analyzed using Microsoft Excel and Stata version 14. Results showed that there is a negative relationship between tax compliance and tax complexity. Educational level and income levels have a positive relationship with tax compliance. The people of Winneba generally have a poor perception of the fairness of the tax structure. Tax knowledge, compliance cost, and tax usage were significant determinants of the fairness perception of the people of Winneba. In this regard, the study recommends that policymakers should direct policy drafting to ease the resource cost the tax structure poses on the taxpayers, intensify tax education, and also further simplify the tax complexity

Towards a Greater Understanding of the Prevalence of Immigrant Entrepreneurship in the Informal Economy of Ghana: An Institutional Theory Perspective

ABSTRACT This study aims to explore the prevalence of immigrant entrepreneurship in Ghana's informal economy through institutional theory. Specifically, the study sought to understand how the elements of the institutional theory (norms, culture, and regulations, which form formal and informal institutions) support or discourage immigrant entrepreneurship in the Sub-Saharan African context, with insights from Ghana. It is qualitative research that adopts an in-depth face-to-face interview with 30 respondents. Analyzing the data from the interviews, the key findings are immigrants' inability to find paid jobs, failure to gather sufficient funds to operate in the formal sector, and the willingness to use innate ability. The Ghanaian culture of hospitality and the government's inability to implement trade regulations have been an enabler to the prevalence of immigrant entrepreneurship in Ghana. The legal frameworks that prohibit immigrants from participating in retailing, especially in the informal economy of Ghana, are well known by immigrant entrepreneurs, albeit it has yet to adhere. Therefore, there is a call for policy measures to address the weak institutional framework, which encourages disregard for the country's laws. Immigrant entrepreneurs who wish to remain in doing business in Ghana must obey the rules or suffer the punishment thereof.

The effect of unemployment on the economy of Ghana

The effect of unemployment on the economy of Ghana

Shoppers’ Experience Value and Behavioural Intentions in Shopping Malls: The Mediating Effect of Satisfaction

The economy of Ghana relies heavily on the retail industry and the establishment of shopping malls in the past decade has added a boost to the industry. However, little empirical research exists regarding shoppers’ experience value, satisfaction and behavioural intentions within shopping malls in Ghana. This study sought to close this gap by investigating the influence of shoppers’ experience value on satisfaction and behavioural intentions within selected shopping malls in Ghana; evaluate the mediating effect of customer satisfaction on shoppers’ experience value and behavioural intentions; and propose a model of customer experience value, satisfaction and behavioural intentions in the context of shopping malls in Ghana. The survey was conducted in the four largest shopping malls in Ghana. Through a quantitative methodology and purposive sampling, 500 usable copies of the questionnaire were included in the data analysis, and IBM SPSS (version 26) and AMOS computer software were used to perform the statistical analysis. The findings showed that shoppers’ experience value influences customer satisfaction and behavioural intentions. Customer satisfaction was found to influence behavioural intentions but does not act as a mediating variable between shoppers’ experience value and behavioural intentions within shopping malls in Ghana. It is recommended that shopping mall managers consider customer experience value as a multidimensional construct to stage a rewarding experience for customers. The latter will contribute positively to customers’ satisfaction and behavioural intentions.

The Impact of E-Commerce on National Trade of Ghana

The importance of ecommerce to an economy and businesses cannot be overemphasized. It is recognized that ecommerce to businesses could trigger an innovative way that marketing and necessitate international trade. In effect, the study sought to investigate the effect of E- commerce on the national trade in Ghana. The study sought to analyze the factors that influence the adoption of ecommerce in Ghana. It also determined the effect of ecommerce to the economy of Ghana. The study adopted quantitative approach through the use of primary and secondary data. Research analysis used for this study were the frequency and the generalized method of moment (GMM). With respect to the primary data estimation, the findings of the study showed that ICT, skills and cost in ecommerce are factors influencing ecommerce among businesses in Ghana. On the part of the estimation of the secondary data, the result of study indicated that at one percent level of significant, ecommerce has positive significant effect on economic growth of Ghana. Per the outcome of the study, it was recommended that long term policy should be put in place to ensure the growth of ecommerce in Ghana. Keywords: Ecommerce, International Trade, Economic growth, Small and Medium Enterprise and Information Communication Technology DOI: 10.7176/JESD/13-24-07 Publication date: December 31 st 2022

The impact of location tax incentives on the growth of rural economy: evidence from Ghana

Over the last two decades, location tax incentives programs serving as a motivating force have been progressively well known as activities to draw in and/or hold foreign direct investments (FDIs) in economically blighted areas. The study examined the impact of location tax incentives on the growth of the rural economy of Ghana from the period of 1994 to 2018. The data were sourced from Ghana Investment Promotion, UNCTAD, and the World Tax Database. Using ARDL Cointegration and Error Correction Models were estimated to examine the static and dynamic long-run effects as well as the short-run dynamics of the system and the speed of adjustment to the long-run equilibrium. However, FDI is skewed towards the Greater Accra region, Ashanti region, Central region, and Eastern and Western regions notwithstanding the location tax incentives the government has been given since the 1990s. The study shows that there is a positive and statistically significant effect of tax incentives on employment creation and rural development in the long run. It revealed that trade openness and market size have a significant effect on employment creation and rural development. It emerged that there is no correlation between location tax incentives and the regional distribution of FDI in Ghana. It has become a well-established fact that adequate tax holidays are beneficial to businesses and encourage them to make investment decisions. It is therefore recommended that a more extensive mindfulness crusade through workshops, courses, and advertisements is necessary to empower the investors about the accessible business opportunities.

Banking Crisis in Ghana: Major Causes

The concept of banking crises is a global phenomenon and many nations of the world has suffered one or more banking crises. The economy of Ghana in recent times has been greatly shaken due to the banking crises that has overwhelmed it’s banking sector. Over the past decade, Ghana has been hit by diverse banking crisis that has seen some banks and savings and loans institutions being collapsed with many others also being consolidated. This paper outlines the main causes of the banking crises that occurred in Ghana, such as poor corporate governance and high non-performing loans. The study revealed that the banking crisis that Ghana suffered recently could very well be avoided if the regulatory body – Bank of Ghana performed its duties effectively and efficiently. From the study, it can be concluded that if the “banks in question” practiced a well vexed internal control system – the crisis could have been averted or reduced to the barest minimum.

Institutional Support for Entrepreneurship and New Venture Internationalization

We build on institutional theory to predict that (1) home country institutional support for entrepreneurship promotes new venture internationalization, (2) entrepreneurial alertness positively impacts this relationship, and (3) political ties negatively impact the moderating effect of entrepreneurial alertness. We confirm our hypotheses with two sets of primary data collected in the emerging economy of Ghana. We conclude that home country institutional support for entrepreneurship exhibits the strongest effect on new venture internationalization for founders with higher levels of entrepreneurial alertness and weaker political ties.

Analysis of Ghana’s SMES industrial policy approach: Call for a new beginning

Since the launch of Ghana’s Industrial Policy (GIP) in 2011, it has not received the needed backing for implementation. This has created a challenge for industrial efficiency for the economy of Ghana. Based on the implementation gaps identified in the policy, it is argued that Ghana can absolve itself from neoliberal economic dictates if it focuses on a new industrial policy approach that galvanises the Small and Medium-sized Enterprises (SMEs) sector. The objective of this paper is to review the GIP and to identify the gaps in its implementation and implications for SMEs’ growth in Ghana. Using the doctrinal research method, secondary data sources were analysed. The study revealed that the GIP comes in as a key development paradigm with private sector collaborations, yet its potentials have not been harnessed as expected. The paper concludes that, for a paradigm shift, it is rewarding to give greater attention to the manufacturing department of the SMEs with the view of developing a useful industrial policy regime.

Differences in the relationship between social capital and hypertension in emerging vs. established economies in Sub-Saharan Africa

BackgroundThe global burden of hypertension is growing, particularly in low- and middle-income countries. This study aimed to investigate differences in the relationship between social capital and hypertension between regions in Sub-Saharan Africa (West vs. South Africa) and within regions (rural vs. urban residence within each country).MethodsData for 9,800 adults were analyzed from the Study on Global Ageing and Adult Health (SAGE) 2007-2010 for Ghana (West African emerging economy) and South Africa (South African established economy). Outcomes were self-reported and measured hypertension. The primary independent variable was social capital, dichotomized into low vs. medium/high. Interaction terms were tested between social capital and rural/urban residence status for each outcome by country. Linear and logistic regression models were run separately for both countries and each outcome.ResultsThose with low social capital in the emerging economy of Ghana were more likely to have hypertension based on measurement (OR=1.35, 95% CI=1.18,1.55), but the relationship with self-reported hypertension lost significance after adjustment. There was no significant relationship in the relationship between social capital and hypertension in the established economy of South Africa after adjustment. No significant interactions existed by rural/urban residence status in either country.ConclusionLow social capital was associated with worse hypertension outcomes, however, the relationship differed between South Africa and Ghana. Further investigation is needed to understand differences between and within countries to guide development of programs targeted at leveraging and promoting social capital as a positive component of overall health.

An Empirical Assessment of the Nexus between Sectoral Structure, Inflation, Exchange Rate and Economic Growth in Ghana

The study examined the relationship between inflation and exchange rates in Ghana, the sectoral structure of the economy of Ghana and also explored how this structure influences economic growth when inflation and exchange rates are under consideration. The study gathered data over the sampled period of 1980- to 2019 and used appropriate techniques to test for unit roots and co-integration in the data. After applying the appropriate regression techniques results obtained, it was identified that there was a negative relationship between inflation and exchange rates in Ghana from 1980- to 2019. Also, results obtained from the descriptive analysis and correlation results showed that the current structure of the economy was dominated by services value-added, followed by industry value added and then agriculture value-added. Finally, results showed different impacts of interactions between inflation and sectoral structure on economic growth in Ghana, as compared to the interactions between exchange rates and sectoral structure in Ghana. The study concluded that the structure of the economy of Ghana has also evolved—from one dominated by agriculture value added to one that is now dominated by services value-added. This change in the structure has resulted from changes in economic policies and the adoption of liberalization policies that have allowed for more trade and free markets. It was recommended that the real issue for policymakers should not be how to control inflation or the exchange rate. Instead, policymakers should focus on how to structure the economy of Ghana to take advantage of the dynamics of the global marketplace and reduce the influence of the exchange rate on the economy of Ghana. Also, there is a need for more public education on the importance of consuming and patronizing locally manufactured goods and services.